![]() Total sales volume: Surpassing quota expectations could earn higher commission rates for additional sales.Sales commission may also vary considering these factors: Most companies pay a base rate (either by the hour or as an annual salary) in addition to the salesperson’s earned commission.Ĭommission rates go as low as 5%, though these companies typically offer significant base rates. ![]() However, many agree that 20%-30% is a typical range for sales representatives. Ultimately, commission rate and total annual salary vary based on commission structure and the salesperson’s experience.īecause there are so many variables, there’s no true average sales commission rate. More experienced salespeople or those in high-end industries may earn 100% commission for sales without any supplemental base pay. What Are Commission Rates?Ĭommission rates are a set percentage or dollar amount of a gross sale that is rewarded to a salesperson as part of their compensation.Įntry-level salespeople may enjoy a 5% commission rate of the cost of every item sold on top of their base salary. *Additional pay includes performance-based compensation such as commission, bonuses and profit sharing. However, we’ve estimated typical sales commission rates using Glassdoor salary data to help you decide what fits your budget and maintains a competitive edge in the hiring pool. With so many factors, it can be difficult to nail down true averages. Some workers may earn their whole salary through 100% commission, while others earn 10% on top of a base salary.Īverage sales commission rates by industry also vary depending on an employee’s specific role and experience. The average commission rate for sales sits somewhere between 20% and 30% of gross margins, but this depends on the sales structure. Commission structures are also a motivating factor that give salespeople some independence, help them reach on-target earning (OTE), and help managers meet goals month over month. ![]() ![]()
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